Irish government relaxes rules around bankers’ pay and bonuses

The transcript discusses the pay restrictions imposed on Irish banks, highlighting the challenges these restrictions pose for staff recruitment and retention, especially in critical areas like IT and compliance. A review suggests amending these restrictions, including removing the ban on variable pay and the pay cap for Bank of Ireland. The discussion also covers the future challenges in recruitment due to the exit of KBC and Ulster Bank, emphasizing the need for competitive pay to retain talent. The impact of pay on staff retention and the importance of having the right people in place for the banks that hold the majority of Irish deposits are also addressed.

What is one of the main challenges faced by banks due to current pay restrictions?

• Lack of competition in the banking sector

• Overstaffing in critical areas

• Difficulty in recruiting and retaining staff

• Excessive bonuses being paid

What change is suggested regarding the ban on variable pay?

• Remove the ban on variable pay up to €20,000

• Keep the ban unchanged

• Apply the ban to all banks

• Increase the ban to €30,000

Why is the pay cap for Bank of Ireland suggested to be removed?

• The bank has a surplus of staff

• The bank is merging with another institution

• The bank is facing financial difficulties

• The state is no longer a shareholder

What is a significant issue for banks in recruiting new staff?

• Lack of qualified candidates

• High competition from other sectors

• Pay issues leading to staff leaving

• Overabundance of applicants

What percentage of people leaving the banks go to employers who offer bonuses?

• 10-15%

• 40-45%

• 20-25%

• 30-35%